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Portfolio Spotlight

B2B SaaS

01

Vertical Overview

Business-to-business (B2B) software as a service (SaaS) companies offer software solutions to businesses that perform operating tasks or increase operational efficiency. The software can be distributed through on-site applications or a cloud-based distribution model. More firms are adopting cloud-based services as it offers the ability to flex software demand, therefore lowering overall costs. Business models are usually subscription based.
 
B2B SaaS products include several different types of software such as office management, customer support, marketing, customer retention management, or communication software used within a business. While DCA typically focuses on SaaS, the company also reviews IaaS (infrastructure as a service) and PaaS (platform as a service) opportunities, which are also cloud-based.
The Case For Growth

02

The Case
For Growth

B2B SaaS has gained significant traction in recent years because it lowers upfront costs, streamlines maintenance and upgrades, and offers the ability to scale up or down as needed. At DCA, we believe there are several factors that make B2B SaaS a compelling growth opportunity for investors.

  1. Industry demand is robust as firms are still early in the adoption of digitally transforming operational and process tasks to improve efficiency and competitiveness. In addition, B2B SaaS firms continue to expand product offerings across all industries to help firms improve operations.

  2. B2B SaaS companies are often well-integrated into their customers’ businesses, enabling strong retention rates. Therefore, switching costs are high and enable B2B SaaS companies to create a predictable and reliable source of revenue.

  3. B2B SaaS firms benefit from a low cost distribution model and can produce very healthy gross margins. At scale, companies can leverage a strong margin profile to produce relatively high cash flow that can be used to fuel growth or distribute to shareholders.

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ONWARD

B2B SaaS By The Numbers

01
.......
$702 Billion Projected B2B SaaS
Market Size 2030*

Source

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.......
18.82% Projected 7yr CAGR*

Source

03
.......
$709 BillionValue of 10 largest public B2B SaaS companies**

Source

DCA Portfolio Companies

01
myCOI
Insurance Management
02
LawLytics
Legal Website Platform
03
Curate
Wedding & Event Management
04
eVisit
Telemedicine Provider
05
Botco.ai
B2B/B2C Conversation Automation
06
NatureBoss
Lease & Renewal Automation
07
Dynamhex
Energy Consumption Monitoring & Visualization
08
BlastPoint
Predictive Customer Data Analytics

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